Glencore ruled out of bidding for ENRC

AP News
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Posted: Jun 15, 2011 3:29 AM
Glencore ruled out of bidding for ENRC

Commodity trader Glencore International has been ruled out of making a bid for Kazakhstan's European Natural Resources Corp. for the next six months by British takeover rules.

Responding to press reports, Glencore on Wednesday announced it was not actively considering a bid for ENRC, reaffirming comments by Chief Executive Ivan Glasenberg in a conference call Tuesday.

According to London's Takeover Panel rules, "if a potential offeror announces that it has no present intention of making an offer it will normally be prevented by the panel from bidding for the target for a period of six months."

Glencore said it reserved the right to make a future offer with the panel's consent if another party targets ENRC, or if there is a material change in circumstances.

The Kazakh government last week reduced its stake in ENRC from 19.4 percent to 11.7 percent in a share swap which also gave the government a 15 percent share in rival metals company Kazakhmys PLC.

Kazakhmys, the largest shareholder in ENRC with a 22.2 percent stake, last month turned down a $13.8 billion takeover approach from ENRC.